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'CONFIDENTIAL 86/9-I OIL REFINERY BAHRAIN PETROLEUM COMPANY. C-64' [‎26v] (57/448)

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The record is made up of 1 volume (220 folios). It was created in 12 Aug 1935-20 Jun 1936. It was written in English and Arabic. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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2.
Company in their known desire to give effect to the wishes of
the Sheikh for a Refinery within his territories.
The Company would erect and operate such a Refinery as
a commercial venture in the hope that it would at all times
hereafter provide an outlet for Bahrein crude oil. It is not,
at this juncture, possible to specify the products likely to
result from the refining processes employed from time to time
"by the Company.
Undoubtedly a market exists for refined products, such,
for example, as fuel oil, where a market does not exist for the
crude product. The result of refining would, it is believed,
be reflected in an increased production of Bahrein crude oil
and a corresponding increase in royalty for the Sheikh. I
even venture to visualise that a logical result of the erection
of a Refinery in Bahrein would be an arrangement made without
prejudice to the interests of the Sheikh to supply f uel oil ' to
j His Majesty’s Government’s ships at Bahrein.
It may he ashed why, with the wide exemption irom
taxation which the Company already enjoy under tne^r Lease,
they should ash for more? The answer is that the operation of
a Refinery requires a continuous supply of material for
extending, improving and repairing the plant itself as vvel^
as acids and other chemicals and materials used in ohe
refining processes, which is not true to the same extent
the actual production of crude oil after drilling and
development have heen largely completed. You can appreciate,
therefore, that in legislating for a long period such as is
provided by the Lease, every care must he tahen hy the
Company to see there is a minimum of extraneous expenses.
The/

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Content

The volume contains correspondence between the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. (Maurice Clauson), the Bahrain Petroleum Company (Hamilton R Ballantyne), the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (Trenchard Craven Fowle, Percy Gordon Loch) , the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. at Bahrain (Percy Gordon Loch), and the Government of Bahrain (Shaikh Ḥamad bin ‘Īsá Āl Khalīfah, Charles Dalyrmple Belgrave) regarding the Bahrain Petroleum Company (BAPCO)’s wish to erect an oil refinery in Bahrain.

The primary subject of discussion in the volume is the Bahrain Petroleum Company’s interest in erecting a refinery in Bahrain; the possible markets for oil produced by it; the Admiralty’s interest in the potential value of access to petrol during wartime conditions; and the possibility of using a refinery in Bahrain to refine imported oil. Also discussed is the Company’s interest in securing further tax exemptions from the Bahrain Government in relation to establishing a refinery; an agreement to increase the minimum amount of royalty paid by BAPCO to the Bahrain Government; and the desire of the Shaikh of Bahrain to ensure that every effort would be made to employ Bahraini subjects at the refinery once complete.

Other matters discussed in the volume include:

  • BAPCO’s intention of loaning American refinery construction workers from the Standard Oil Company of California to work on construction of the refinery at Bahrain, and arrangements with the British Consul-General in San Francisco (Cyril H Cane) for the issuing of visas to the relevant individuals;
  • the drafting of a deed which would modify the mining lease between BAPCO and the Government of Bahrain in order to enable the erection of a refinery in Bahrain, and the procedures required for its signature in Bahrain. A copy of the original mining lease can be found at folios 6-16, and a copy of the deed modifying the lease can be found at folios 167-170.
  • BAPCO’s intention of attempting to acquire some of the plant for the refinery from Germany and the need for the plant to be accompanied by 2 Germans to assist in its erection and to oversee the training of BAPCO staff in its use.

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 213-217.

Extent and format
1 volume (220 folios)
Arrangement

The volume contains a table of contents on folio 2 comprising of subject headings and page references. The papers are arranged in approximate chronological order from the front to the rear of the file. File notes for the volume can be found at folios 213-217, the notes cover the correspondence contained within the volume as well as references to correspondence covering the period 15-20 June 1936 which is recorded as having been transferred to file 86/2 [IOR/R/15/1/662].

Physical characteristics

Foliation: The main foliation sequence (used for referencing) commences at the front cover, and terminates at the inside back cover; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional mixed foliation/pagination sequence is also present in parallel between ff 6-217; these numbers are also written in pencil, but are not circled. The parallel sequence is located in the same position as the main sequence, although some folios are also numbered on the verso The back of a sheet of paper or leaf, often abbreviated to 'v'. .

Written in
English and Arabic in Latin and Arabic script
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'CONFIDENTIAL 86/9-I OIL REFINERY BAHRAIN PETROLEUM COMPANY. C-64' [‎26v] (57/448), British Library: India Office Records and Private Papers, IOR/R/15/1/681, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100024507244.0x000029> [accessed 25 April 2024]

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